https://www.taxtmi.com/caselaws?id=791655 Interest on borrowed capital is deductible under Section 36(1)(iii) when the borrowing is for business purposes and satisfies commercial expediency. The Court held that funds used through a subsidiary or shareholding arrangement were still connected with the assessee's composite business, because the operations were interlinked and under common management. Deduction could not be denied merely because the borrowed money passed through an associated concern before being applied to the share transaction, and the revenue disallowance was unsustainable. en-us Thu, 07 May 2026 00:00:00 +0530 Fri, 17 Jul 2026 11:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791655 Interest on borrowed capital is deductible under Section 36(1)(iii) when the borrowing is for business purposes and satisfies commercial expediency. The Court held that funds used through a subsidiary or shareholding arrangement were still connected with the assessee's composite business, because the operations were interlinked and under common management. Deduction could not be denied merely because the borrowed money passed through an associated concern before being applied to the share transaction, and the revenue disallowance was unsustainable. Case-Laws Income Tax Thu, 07 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791655